Committee approves $4 million emergency appropriation to cover 2025 liability claims and settlements

The Financial and Administrative Committee approved an emergency appropriation of $4 million on Sept. 4 for the liability insurance and risk fund to cover claims and settlement expenses that exceeded the fiscal 2025 budget.

Erica Osinski, risk manager, requested the appropriation (agenda item 8.29) to fund higher‑than‑budgeted claim payments and several larger settlements that were anticipated but not previously budgeted. Osinski said the county reserved amounts in the fund balance for potential settlements but had not budgeted for them. Committee members asked whether the fund should be budgeted at a higher level going forward; staff and the county administrator explained the county’s practice of reserving the actuarial estimate in fund balance and requesting emergency appropriations for outlying settlements rather than budgeting the full actuarial exposure, to avoid double‑counting reserves and budgeted spending.

County staff said the actuarial valuation used in audited financials shows a multi‑year liability estimate; Miss Varsa (finance) and others suggested inviting the actuarial consultants to present to the committee to explain methodologies and timetables for expected payments. The committee approved the $4 million appropriation on a voice vote. Staff said the appropriation will be funded from the liability fund balance.